Loan Prospector Collateral Feature

Greater choices and flexibility in managing the collateral assessment process

The collateral feature in Loan Prospector® allows you to further streamline your mortgage origination process and improve service to borrowers. With our easy-to-use collateral feature, you’ll see expanded eligibility for streamlined assessments through Loan Prospector’s Home ValueSM property valuation models, which we’ve improved to include more coverage than ever.

How it Works

Loan Prospector’s collateral feature provides you feedback that specifies the minimum collateral assessment required for the loan to be eligible for sale to Freddie Mac. The report specified in your feedback is determined by Loan Prospector’s assessment of the loan’s overall risk profile and whether Loan Prospector's Home Value models can independently verify the property value.

We provide you with streamlined assessment reports that are acceptable to a broad range of investors. Our collateral feedback specifies one of the following minimum assessment forms, depending on the loan’s credit risk profile:

Minimum Assessment Form

Steps Required

Loan Prospector Condition and Marketability Report (Form 2070)

This consultation report is our most streamlined assessment form specifically designed to be used in conjunction with Loan Prospector’s Home Value models. Using this form, the appraiser performs either an interior and exterior inspection or exterior-only inspection as specified in your Loan Prospector feedback, as well as a drive-through inspection of the neighborhood. There is no need to estimate the property value, since this form is used in conjunction with Loan Prospector’s Home Value models.

The 2055-streamlined appraisal report enables your appraiser to quickly establish value and marketability by performing an interior and exterior inspection or exterior-only inspection as specified in your Loan Prospector feedback. Form 2055 relies on the sales comparison approach to determine value, eliminating the cost and income valuation methods from the assessment.

Traditional appraisal report, including Uniform Residential Appraisal Report Form 70, Form 72 or Form 465

Freddie Mac will continue to require a comprehensive appraisal report when income and cost valuation methods are needed to establish value and marketability.